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Warning on effect of UK proposals
05 Feb 2016 12:12
European Union proposals for keeping Britain in the EU risk distorting competition in banking unless they are applied carefully, the bloc's banking watchdog said today.
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European Council President Donald Tusk has proposed a package of measures to persuade Britons to vote in favour of staying in the EU when a UK referendum is held, most likely in June.
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The proposals, if approved by EU leaders at a summit later this month, would allow countries like Britain that are outside the single currency to have bank capital rules that are different from those implemented inside the euro zone.
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This has raised the prospect of fragmenting the so-called EU single rulebook aimed at ensuring a level playing field for all banks across the 28-country bloc's capital market.
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